Does Roku Have Leverage Over Streaming Services?
Roku (NASDAQ: ROKU) has done phenomenally well in 2020. Shares of the streaming TV (CTV) platform are up over 130% this year, outperforming the Nasdaq and S&P 500. The platform has seen a big bump in usage due to COVID-19 stay-at-home measures, and investors are being rewarded for it.
But with this sky-high valuation -- Roku trades at a price-to-sales ratio of 25 -- the company needs to find new ways to make money off of its platform. One question investors should be asking themselves is whether it has leverage over the video services that use it for distribution. Let's see if that is in fact the case.
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Source Fool.com
